Charmant is the big Japanese eyewear company that recently got a global license from Puma. It is now adding a worldwide license for Lacoste prescription frames and sunglasses. Charmant had previously taken over the rights to the Lacoste brand for Asia, starting in January 2006, and for North America and Mexico, starting in July 2006. Lacoste’s long-time licensee, L’Amy Group of France, remained with the rights for Europe, the Middle East and Africa, but it will have to give them up after next Dec. 31.
Officials of Lacoste said they had decided to work only with Charmant because they wanted only one global collection under the brand, supported by a sales network with a truly international dimension. They declined to say whether the Japanese firm had been able to generate high sales figures, but stressed that they were more interested in projecting a good international lifestyle image rather than in numbers, considering that eyewear is a relatively small market as compared to footwear, luggage or cosmetics, where Lacoste has big licensing partners.
Apparel still represents 60 percent of the turnover generated by the Lacoste brand worldwide, but the share taken up by other products is rising. After strong double-digit growth of 24 percent in 2004 and 22 percent in 2005, total wholesale sales under the brand increased by only 12 percent in 2006 to €1,480 million, and they are likely to rise by only 7 percent this year to around €1.6 billion.
The strength of the euro is one of the reasons for the slowdown. Sales continue to grow strongly in the USA, now the biggest market with a turnover of more than $300 million, which actually includes some corporate retail stores. France is in second place with 11 percent of the global turnover. The brand is also expanding rapidly in Latin America, where it main licensee, Devanlay formed a joint venture based in Argentina one year ago. That company is taking care also of Chile and is going to handle also Brazil from 2008, with a plan for 50 Lacoste stores in that country.
Company executives see potential for future growth in the Americas as well as in China, India and Russia, where the brand can more easily project its new young and more fashionable image. It’s harder to do so in established markets such as Japan or Korea, where Lacoste has a longer history.
